The Exceptions of Your Homeowners Insurance Coverage
You have home insurance. You know that it’s meant to cover costs related to damages outside of your control. But did you know that your policy has some exceptions?
Overland Flooding
Standard home insurance policies will offer coverage for water damage due to a variety of scenarios, like when a fixture overflows or when the hose of your dishwasher blows out. But these policies will not help you when you encounter water damage from overland flooding. If there’s an outdoor flood that turns your basement into a lake, you may not get coverage for the resulting damages.
What Can You Do About This?
You can sign up for a supplemental plan through the National Flood Insurance program to get coverage for this specific disaster.
Burst Pipes
Standard home insurance policies will usually cover the water damage resulting from a burst pipe. However, the policy may deny any coverage if they can prove that the burst pipe is a result of homeowner negligence. For instance, if a homeowner doesn’t take any precautions to stop a pipe from freezing and bursting open, then they may not get coverage.
What Can You Do About This?
Take precautions to prevent pipe freezing and bursting. Insulate your exposed water pipes in the winter months—this should prevent them from freezing. If you’re leaving your home for a long period of time in the winter, you should drain your plumbing system, just in case.
Pests
Your home insurance policy will not cover the damages related to a pest infestation. Why? Pests are considered the responsibility of the homeowners and can be prevented through certain precautions, like locking up food, cleaning up garbage and sealing cracks in the walls.
What Can You Do About This?
First, try to take precautions to discourage pest infestation. Keeping your house clean, tidy and secure should prevent various pests from feeling welcome indoors.
It’s still possible to encounter a pest infestation, even if you try hard to keep them out. To make sure that you can manage the costs of pest infestation right away, you should put together an emergency fund. With an emergency fund, you can cover the costs of pest control services along with any necessary expenses to repair, clean and protect your property.
If you don’t have enough in your emergency fund right away, there are alternatives you can turn to. You could use your credit card to cover the expenses. Or you can try to apply for a personal loan online — find out what you need to know about this borrowing option. A personal loan could be the solution that you’re looking for.
Power Surges
A power surge occurs from either lightning or the electrical company after a power outage. A standard policy won’t help you in the case of a power surge, and it will not cover any of the related damages — unless a short circuit starts a housefire.
What Can You Do About This?
You could install a whole-home surge protector with the help of a professional electrician — this should prevent a power surge from causing any damage.
These are some more common exceptions in standard homeowners’ insurance policies:
- Mold
- Earthquakes and ground movements (landslides, mudslides, etc.)
- Damage from neglect
- Fraudulent losses
- Dog bites from insurance-banned dog breeds
You should know the exceptions for your homeowner’s insurance now. It’s better than trying to make a claim and finding out the damages aren’t covered. You don’t want to find out the hard way.
